“Actually, in industrial circles, I believe that the percentage is more like 90/10, and that's especially true in the independent distribution market. So when it comes to firing a customer, you have to look at a lot of things: the requirements the customer puts on your people; your strategy of providing services to them; and the opportunity cost involved.”
“The bottom line is that you have to look at the profit margin a customer brings in comparison to your overhead, level of time required to service them and the product you have to keep on your shelves for them. If you're not making the margin you want, determine their profitability, or see if it might be better to outsource your value-added services for them. Why do business with someone who will make you lose money?”
